According to Lee Bok-hyun, the Chief of the Financial Audit Service, South Korea will implement a new exchange monitoring system designed to detect illegal short selling starting from the first quarter of 2025.
The proposed system, initially scheduled for April, is seen as a critical step towards lifting the current ban on short selling across the market.
Since November, the ban, primarily aimed at preventing illegal trading activities, especially by foreign investment banks, has been in effect.
During a radio interview on Monday, Governor Lee reiterated the desire to provide investors with a clear timeline for partially lifting the ban, possibly as early as June or at the latest, and how it would be eased.
The implementation of the new monitoring system is part of South Korea’s efforts to enhance market fairness and transparency, addressing concerns about illegal trading practices that could compromise market integrity.
The precise date for the partial lifting of the ban and the conditions under which it will occur are expected to be announced following the establishment of the new detection system.
Source: investing.com
